The managers of Reflex CES take control of the company with support from Crédit Mutuel Equity and the French Armed Forces Ministry’s Definvest fund, managed by Bpifrance

Reflex CES is reorganising its shareholder base around its key managers, who are taking control of the company. Crédit Mutuel Equity and the French Armed Forces Ministry’s Definvest fund, managed by Bpifrance using expertise provided by the Direction Générale de l’Armement (DGA), a defence procurement agency, are investing € 8 million to support the growth of Reflex CES, based in the Paris region.

Founded in 2000, Reflex CES is a company that specialises in designing and manufacturing complex embedded electronic systems and cards. With facilities in Lisses, France, and in California, USA, the company has over 70 employees and generates turnover of € 23 million.

For its customers in the defence, cybersecurity, biosciences, instrument, and financial industries, Reflex CES offers FPGA-based (“field programmable gate array”) solutions that range from custom creations to standard products marketed from the company’s catalogue. The FPGA is a technology solution that addresses needs for the very rapid processing of massive amounts of data. The technology works for numerous different applications requiring reprogramming and adaptation capabilities, and also enables a short time to market.

“The goal of this reorganisation of our shareholder base is simple: to strengthen our current growth plan via a targeted external growth strategy. Having Crédit Mutuel Equity and Definvest by our side is a clear reflection of our intention to pursue development and rapid growth in high-potential technology markets. I am particularly proud of the outcome of this project and will work with the rest of the management team to support this new drive for growth,” explains Sylvain Neveu, Chairman of the Reflex CES group.

For Sébastien Lecornu, French Armed Forces Minister: “Through this fifteenth investment, Definvest is once again proving itself to be an essential tool of the Ministry of Armed Forces. This fund allows us to support strategic companies like Reflex CES by backing their growth and diversification, thus contributing to French sovereignty.”

“We are delighted to be closing this transaction, which was developed with the Reflex CES management team to allow them to take control of the company. Reflex CES, which is well known for its unique skills in the French defence electronics industry, is one of the players supporting French sovereignty, the stakes of which have been raised by our current geopolitical context. Furthermore, the diversification of its customer portfolio offers the company great prospects for its continued growth,” adds Jean-Baptiste Champeau of Crédit Mutuel Equity.

“We are delighted to have the opportunity to support Reflex CES and its leaders in this new stage of their development, which will involve, among other things, a targeted external growth strategy. This growth plan will enable the company to further expand its offerings and its portfolio of customers by capitalising on its renowned expertise. As such, this investment fits perfectly into the strategy of the Definvest fund, which is intended to support players in the defence industry by helping them consolidate and reinforce their position in the value chain,” say Ménelé Chesnot and Baptiste Proveau of Bpifrance.

“In spite of a complicated situation in the electronic components market, the highly technical expertise of Reflex CES and the current trend for FPGA applications in the defence and cybersecurity markets, combined with the consolidation strategy put forth by the company’s management, drew a lot of interest from the industrial and financial players consulted,” adds Raphael Petit, Partner at Oaklins France.

About Crédit Mutuel Equity:

Crédit Mutuel Equity is home to all of the Private Equity activities of Crédit Mutuel Alliance Fédérale: Capital Développement (Capital Development), Capital Transmission (Capital Transfer), and Capital Innovation.

Crédit Mutuel Equity provides capital support to business leaders at all stages of development of their companies—from start-up to transfer—by giving them the resources and time required to implement their transformation projects. Crédit Mutuel Equity brings together over 350 business leaders, who share their beliefs and pose questions within a true network of entrepreneurs that allows each member, regardless of the nature of their project, to benefit from the experience of others. By investing its own capital (€ 4 billion), Crédit Mutuel Equity finances companies’ projects with timelines that are adapted to their growth strategies, in France, Germany, Switzerland, and Canada.

For more information: www.creditmutuel-equity.eu

About Bpifrance, the DGA, and their Definvest investment fund:

The capital investments of Bpifrance are carried out by Bpifrance Investissement. Bpifrance finances companies at every stage of their development with credit, guarantees, and equity capital. Bpifrance supports them with their innovation and international projects. Bpifrance also supports their export activity through a wide range of products. Consulting, its own university, networking and acceleration programme for start-ups, SMEs and midsize companies are also offered to entrepreneurs.

Thanks to Bpifrance and its 50 regional branches, entrepreneurs benefit from a single, local, and efficient point of contact to support them in taking on challenges.

More information at: www.Bpifrance.fr – https://presse.bpifrance.fr/ – Follow us on Twitter: @Bpifrance - @BpifrancePresse

The Direction Générale de l’Armement (DGA): A leading force for expertise, testing, and engineering within the French Ministry of Armed Forces, the DGA is tasked with equipping the armed forces through a sovereign approach, laying the groundwork for future defence systems, promoting European cooperation, and supporting exports. As the largest procurement agency in the French government, in 2021, the DGA placed orders from industry worth € 23.5 billion and invested € 1.404 billion in innovation and defence technology projects. The agency has 18 sites in France, employs 10,000 men and women, both civilian and military, of whom around 60% are managers, engineers, and experts, and maintains a network of international partners. The DGA operates in all areas of defence (land-based, naval, and aerial combat, electronic communication and information systems, deterrence, space, cybersecurity, robotics, etc.).

More information is available at: www.defense.gouv.fr/dga and www.ixarm.com – Follow us on Twitter: @DGA

With € 100 million provided by the French Ministry of Armed Forces, Definvest combines the complementary expertise of the Direction Générale de l’Armement (DGA) and of Bpifrance. The fund is an extension of SME support measures already deployed by the DGA and aims to acquire equity stakes in strategic SMEs within the French defence industrial and technological base.

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